Clarification regarding supply of Information Technology Enabled Services (ITeS)

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....#2406;अनु०शा०), ज्वाइन्ट कमिश्नर (कार्यपालक/वि०अनु०शा०), वाणिज्य कर, उत्तर प्रदेश। विषय :- सूचना प्रौद्योगिकी सक्षम सेवाओं (ITeS सेवाओं) की आपूर्ति से संबन्धित शंकाओं पर स्पष्टीकरण । भारत सरकार, वित्त मंत्रालय, रा&#2....

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....#2325;र, उत्तर प्रदेश के अनुमोदनोपरान्त जारी किया जा रहा है। संलग्नक :- उपरोक्तानुसार। भवदीय, (अजीत कुमार शुक्ला) एडीशनल कमिश्नर (विधि) वाणिज्य कर, मुख्यालय। (As translated by google translator) Letter No.: GST-2019/TS/1920053/664/Commercial Tax Office of the Commissioner, Commercial Tax, Uttar Pradesh (GST Section) Lucknow: Date: 24 October 2019 All Zonal Additional Commissioners, Grade-1, Additional Commissioners, Grade-2 (Legal), Join....

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.... the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act"), in supersession of Circular No. 107/26/2019-GST dated 18.07.2019, hereby clarifies the issues in succeeding paragraphs. 4 'Intermediary' has been defined in the sub-section (13) of section 2 of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as "IGST" Act) as under - "Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account." 4.1 . The definition of intermediary inter alia provides specific exclusion of a person who supplies such goods or services or both or securities on his own account. It is noteworthy that the supplies involving intermediary services would involve two supplies in the same transaction i.e. a principal supply of goods and services and a supply of intermediary service facilitating the principal supply provided either to the supplier or ....

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....pplied on his behalf, and any discounts that the intermediary obtains must be passed back to the principal. III. Separation of value: The value of an intermediary's service is invariably identifiable from the main supply of service or goods that he is arranging. It can be based on an agreed percentage of the sale or purchase price. Generally, the amount charged by an agent from his principal is referred to as "commission". IV. Identity and title: The service provided by the intermediary on behalf of the principal is clearly identifiable. 6.1 Normally, it is expected that the intermediary or agent would have documentary evidence authorizing him to act on behalf of the provider of the 'main service'. Page 2 of 4 Circular No. 110/29/2019 - GST Illustration: There may be various scenarios when a supplier of ITeS services located in India supplies services to or on behalf of his client located abroad. Some of the scenarios are discussed below: Case I - 'X' operates a call centre on his own account, from where he is providing call centre service to his client 'Y' by dealing with the customers of the client on the client's behalf. In this case, though 'X' is dea....